The National Retail Federation’s online-retail division, Shop.org, just released a study that talks about what online retailers are planning for the upcoming holiday season. Apparently the study participants are planning to do a couple of things differently this year. Instead of contests and repeat-buyer promotions, they’re going to focus on free (or reduced) shipping and early-bird specials. Also, they’re planning to start promoting these holiday savings earlier.

The study shows that companies are willing to lose a little in the short-term for the chance to make a lot in the long run. Here’s an example:

The Vermont Teddy Bear Company is going to offer free ground shipping to anyone who buys from them in December AND joins their email list. That means those bears are going to have to eat a 10% increase in shipping-related costs (fuel surcharges, etc.) They’re counting on getting more business out of the people who join the list – and they probably will. After all, our research clearly shows that customers who have already bought from you are a lot more likely to do it again. In fact, you’ve got a 1 in 4 chance of selling something to someone who’s already bought from you.

What are you doing to get the most out of the people who are already buying from you?

Submitted by: bill

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